Stimulate 4.0

What is the maximum penalty for habitual willful noncompliance with the fair credit reporting act?

$2,500

The term illustration in a life insurance policy refers to

A presentation of nonguaranteed elements of a policy

When an annuity is written, whose life expectancy is taken into account?

Annuitant

In an annuity, the accumulated money is converted into a stream of during which time period?

Annuitzation period

Which of the following is true about a class designation?

Beneficiaries are not identified by name

Which of the following best describes fixed-period settlement option?

Both the principal and interest will be liquidated over a selected period of time.

Which of the following statements concerning buy-sell agreements is true?

Buy-sell agreements are normally funded with a life insurance policy

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

Cash option

What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident?

Common disaster clause

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which insurance principles has the insurer violated?

Consideration

Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner?

Third-party ownership

If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT

Erase the incorrect answer and record the correct answer.

Which nonforfeiture option has the highest amount of insurance protection?

Extended term

An agent selling variable annuities must be registered with

FINRA

What does "level" refer to in a level term insurance?

Face amount

Which of the following is an eligibility requirement for a social security disability income benefits?

Fully insured status

An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of a report is that?

Inspection report

Who makes up the Medical Information Bureau?

Insurers

Which of the following is true of a qualified plan?

It has a tax benefit for both employer and employee.

Which of the following life insurance policies allows a policyowner to take out a loan from the policy's cash value?

Variable universal life

When is the earliest a policy may go into effect?

When the application is signed and a check is given to the agent

Stranger-originated life insurance policies are in direct opposition to the principle of

insurable interest

The interest earned on policy dividends is

taxable

An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds

$50,000

To attain currently insured status under social security, a worker must have earned at least how many credits during the last 13 quarters?

6

Which is not true regarding a straight life policy?

Its premium steadily decreases over time, in response to its growing cash value.

A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy?

Joint Life

Which two terms are associated directly with premium?

Level or flexible

An insured has a life insurance policy that requires him to only pay premium for specified number years until the policy is paid up. What kind of policy is it?

Limited payment whole life:

Which of the following explains the policyowner's right to change beneficiaries, choose options, and receive proceeds of a policy?

Owners right

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy

Required a premium increase each renewal.

Which of the following determines the length time that benefits will be receives under the fixed-amount settlement option?

Size of each installment

Who is the owner and who is the beneficiary on a key person life insurance policy?

The employer is the owner and beneficiary

Which of the following best describes what the annuity period is?

The period of time during which accumulated money is converted into income payments

All of the following true about variable products except

The premiums are invested in the insurers general account

Which of the following best defines target premium in a universal life policy?

The recommended amount to keep the policy in force throughout its lifetime

All of the following are true regarding the guaranteed insurability rider except

This rider is available to all insureds with no additional premium.

Which of the following features of the indexed whole life policy is not fixed?

cash value growth

When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is

conditional

Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?

defamation

Which of the following terms is used to name the non taxed return of unused premiums?

dividend

Who bears all of the investment risk in a fixed annuity?

insurance company

In insurance policies, the insured is not legally bound to any particular action in insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?

unilateral